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Inter-Firm Non-Monetary Transactions in Russia: A Literature Review

Author

Listed:
  • Richard B. Goud Jr.

    (Reed College undergraduate student)

Abstract

This paper provides a comprehensive literature review of the use of non- monetary transactions (barter, debt offsets, etc.) in Russia since the fall of Communism. The two primary theories are the credit crunch (liquidity constraint) theory and the virtual economy theory. The former relates to the lack of access to bank credit and cash and the rise of non-monetary transactions as a survival mechanism that oils the gears of the market. The latter asserts that barter is a symptom of a system by which the value added firms (such as Gasprom) subsidize the value destroying firms (the 'white elephants'). Barter allows the two players to arbitrarily set prices so that the value added firm can avoid some of the profit taxes while the value destroying firms can stay alive.

Suggested Citation

  • Richard B. Goud Jr., 2002. "Inter-Firm Non-Monetary Transactions in Russia: A Literature Review," Development and Comp Systems 0207001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0207001
    Note: Type of Document - PDF; prepared on Mac OS X; pages: 20; figures: none. I have not published this but I would like to make it available to others studying the demonetization of Russia since the end of Communist rule.
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0207/0207001.pdf
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    References listed on IDEAS

    as
    1. Marin, Dalia & Schnitzer, Monika, 2005. "Disorganization and financial collapse," European Economic Review, Elsevier, vol. 49(2), pages 387-408, February.
    2. Vlad Ivanenko, 2001. "Testing Russia's Virtual Economy," William Davidson Institute Working Papers Series 428, William Davidson Institute at the University of Michigan.
    3. Ellingsen, Tore, 1998. "Payments in Kind," SSE/EFI Working Paper Series in Economics and Finance 244, Stockholm School of Economics, revised 10 Feb 2000.
    4. Mr. Christian Mumssen & Ms. Irina Dolinskaya & Mr. Simon Commander & Ms. Irina Tytell, 2000. "Determinants of Barter in Russia: An Empirical Analysis," IMF Working Papers 2000/155, International Monetary Fund.
    5. Dalia Marin & Daniel Kaufmann & Bogdan Gorochowskij, 2000. "Barter in Transition Economies: Competing Explanations Confront Ukranian Data," William Davidson Institute Working Papers Series 287, William Davidson Institute at the University of Michigan.
    6. Susan J Linz & Gary Krueger, 1998. "Enterprise Restructuring in Russia's Transition Economy: Formal and Informal Mechanisms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 40(2), pages 5-52, July.
    7. Guriev, Sergei & Makarov, Igor & Maurel, Mathilde, 2002. "Debt Overhang and Barter in Russia," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 635-656, December.
    8. Clifford Gaddy & Barry W. Ickes, 1998. "To Restructure or Not to Restructure: Informal Activities and Enterprise Behavior in Transition," William Davidson Institute Working Papers Series 134, William Davidson Institute at the University of Michigan.
    9. Kim, Byung-Yeon & Pirttila, Jukka, 2004. "Money, barter, and inflation in Russia," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 297-314, June.
    10. Ritter, Joseph A, 1995. "The Transition from Barter to Fiat Money," American Economic Review, American Economic Association, vol. 85(1), pages 134-149, March.
    11. Jan Amrit Poser, 1998. "Monetary disruptions and the emergence of barter in FSU economies," Post-Communist Economies, Taylor & Francis Journals, vol. 10(2), pages 157-177.
    12. S.I. Boyarchenko & S.Z. Levendorskii, 2000. "Search-Money-and-Barter Models of Financial Stabilization," William Davidson Institute Working Papers Series 332, William Davidson Institute at the University of Michigan.
    13. Clifford Gaddy & Barry W. Ickes, 1999. "Stability and Disorder: An Evolutionary Analysis of Russia's Virtual Economy," William Davidson Institute Working Papers Series 276, William Davidson Institute at the University of Michigan.
    14. Sophie Brana & Mathilde Maurel, 1999. "Barter in Russia: Liquidity Shortage Versus Lack of Restructuring," Cahiers de la Maison des Sciences Economiques j99098, Université Panthéon-Sorbonne (Paris 1).
    15. Abhijit V. Banerjee & Eric S. Maskin, 1996. "A Walrasian Theory of Money," Harvard Institute of Economic Research Working Papers 1753, Harvard - Institute of Economic Research.
    16. Seabright,Paul (ed.), 2000. "The Vanishing Rouble," Cambridge Books, Cambridge University Press, number 9780521790376, January.
    17. Daniel Kaufman & Dalia Marin, 1998. "Disorganization, financial squeeze, barter," William Davidson Institute Working Papers Series 165, William Davidson Institute at the University of Michigan.
    18. Ross M. Starr, 1972. "The Structure of Exchange in Barter and Monetary Economies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(2), pages 290-302.
    19. Alfred Lorn Norman, 1987. "A Theory of Monetary Exchange," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 499-517.
    20. repec:zbw:bofitp:2001_015 is not listed on IDEAS
    21. Canice Prendergast & Lars A. Stole, 1996. "Non-Monetary Exchange Within Firms and Industry," NBER Working Papers 5765, National Bureau of Economic Research, Inc.
    22. Kaufmann, Daniel & Kaliberda, Aleksander, 1996. "Integrating the unofficial economy into the dynamics of post-socialist economies : a framework of analysis and evidence," Policy Research Working Paper Series 1691, The World Bank.
    23. Wendy Carlin & Steven Fries & Mark Schaffer & Paul Seabright, 2000. "Barter and Non-Monetary Transactions in Transition Economies: Evidence from a Cross-Country Survey," CERT Discussion Papers 0004, Centre for Economic Reform and Transformation, Heriot Watt University.
    24. Abhijit V. Banerjee & Eric S. Maskin, 1996. "A Walrasian Theory of Money and Barter," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(4), pages 955-1005.
    25. Sergei Aukutsionek, 1998. "Industrial barter in Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 10(2), pages 179-188.
    26. Seabright,Paul (ed.), 2000. "The Vanishing Rouble," Cambridge Books, Cambridge University Press, number 9780521795425, January.
    27. Andrei Yakovlev, 2000. "Barter in the Russian Economy: Classifications and Implications (Evidence from Case Study Analyses)," Post-Communist Economies, Taylor & Francis Journals, vol. 12(3), pages 279-291.
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    More about this item

    Keywords

    barter; non-monetary; Russia; demonetization; transition;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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